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Grundfos doubles the profitability and holds the course

The pump Group doubles the profitability and has achieved sales growth during the first half of 2015. The results are in line with the ambitions.

The turnover hits 11.9 bio. DKK against 11.1 bio. DKK last year (six months). The profitability has doubled to 628m DKK. With this result Grundfos is fulfilling the ambition of turning the declining profitability curve during the last four years.

”We have done what we planned to do. We are pleased to see that the initiatives taken during the last year are so far showing solid and positive results. But we are of course still on the early stages of the journey, and the target is still to stick to the plans for a higher profit rate and a sustainable growth”, says Group President Mads Nipper.

It is especially USA that are still delivering a solid sales growth of 15 percent in local currency, whereas Europe is stable with modest growth rates and increasing market shares. In Russia the sales are decreasing as a consequence of the difficult market conditions, whereas China is more or less unchanged caused by reduced investment levels and uncertainly in the Chinese economy. Other markets, such as South America, the Middle East and Japan are all contributing positively to the growth of the Group.

“We are meeting intensified competition all over, but it is our evaluation that we are still gaining market shares in most markets. The new Group Strategy is being implemented with intensified customer focus, cost consciousness, better service offerings, strengthened product leadership and more efficient value chains. We are still having a long haul in front of us towards 2020, but we have started out well. And despite tough competition and difficult market conditions in several places, our foundation for creating improved results is better than one year ago”, says the Group President.

A new member will today extend the Group Management team as French Stéphane Simonetta is today taking up the position as Group EVP for global production and logistics. He comes from Honeywell Transportation Systems in Switzerland.